PFC share price falls 3% after firm discloses ₹307 crore dues pending from Gensol Engineering. Do you own?

State-run Power Finance Corporation (PFC) share price fell over 3 per cent in Wednesday's trading session after company's disclosure of outstanding dues from the controversy-hit Gensol Engineering. At 11 am, PFC stock was down 2.93 per cent to ₹425.30 apiece on April 23.

In a statement released on Tuesday evening, PFC stated that ₹307 crore of the ₹352 crore disbursed to Gensol Engineering in 2023 for electric vehicle leasing is still outstanding.

What happened exactly?

The company has lodged a complaint with the Economic Offences Wing (EoW) regarding the submission of forged documents by Gensol Engineering, which were allegedly used to misrepresent its debt servicing history.

In January 2023, PFC had approved a loan of ₹633 crore for Gensol Engineering. This funding was intended for the procurement of 6,000 electric vehicles— ₹587 crore for acquiring 5,000 electric four-wheelers to be leased to BluSmart Mobility’s ride-hailing service, and ₹46 crore for 1,000 electric three-wheelers for cargo operations.

However, PFC clarified that the loan for the three-wheelers was never utilized. Out of the ₹587 crore allocated for four-wheelers, ₹352 crore was disbursed for the leasing of 3,000 EVs to BluSmart Mobility.

"Repayments on the disbursed amount had commenced with ₹45 crore repaid, leaving a principal outstanding of ₹307 crore as on April 18, 2025.

“Until January 31, 2025, Gensol was servicing its dues regularly. In Q4’25, PFC invoked the Debt Service Reserve Account (DSRA) to clear February and March 2025 dues," the company said, adding "PFC is actively pursuing further actions in the instant case and exploring all possible options".

So far, 2,741 vehicles have been delivered and pledged to PFC, as verified by third-party agencies appointed by the company, according to the statement. Additionally, the company noted that PFC holds a pledge over Gensol’s equity shares and Non-Convertible Debentures (NCDs), along with a corporate guarantee from Gensol Ventures Private Limited and personal guarantees from the promoters.

The company also mentioned the presence of liquid assets, including TRA balances, DSRA balances, and fixed deposits by BluSmart, with a lien in favor of PFC.

Moreover, PFC has filed a complaint with the Economic Offences Wing (EoW) concerning the circulation of fraudulent documents. PFC emphasized its commitment to protecting its interests, recovering its loan, and maintaining operational transparency.

Last week, SEBI barred Gensol Engineering and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, from accessing the securities market until further notice due to allegations of fund diversion and governance issues. SEBI also directed Gensol Engineering Ltd (GEL) to suspend its planned stock split and prohibited the promoters from holding directorship or key managerial roles in any listed entity. This action followed a complaint received by SEBI in June last year, alleging share price manipulation and misappropriation of funds by GEL, prompting an investigation by the regulator.

(With inputs from PTI)

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